Loan Type Comparison

Loan Type Comparison
FHA, VA, Conventional, and RD
Loan Type Comparison
Mortgage loan insured by the Federal Housing
Administration, a government agency
A mortgage loan that must meet Fannie Mae or Freddie
Mac standards. Both are government sponsored agencies
that buy and sell loans. They do not insure your loan
Loans backed by the United States Department of
Agriculture with the intention to build some of the nation’s
smaller communities
Loans offered by the government to Veterans
FHA vs Conventional
FHA
• Requires as little as 3.5% down
• Loan is assumable
Conventional
• Often have lower rates of
mortgage insurance
• Can qualify even after a
foreclosure or bankruptcy (after
time lapse)
• Does not require Upfront
Mortgage Insurance
• More Credit Flexibility
• Mortgage Insurance can be
terminated
• Can use gifted funds
• Can have co-signers
• Can be Adjustable rates or Fixed
FHA vs Conventional: Cons
CONS
• Requires two kinds of Mortgage
Insurance – Upfront and monthly
• Requires a lower Debt to Income
ratio than FHA
• Home must meet certain
conditions and be appraised by an
FHA appraiser
• Can require as much as 20%
down
• Can never terminate Mortgage
Insurance
• Requires higher credit scores
than FHA
Is a Rural Development Loan Right for Me?
1. Are you in a Rural defined Area?
2. Do you have a credit score of 620 or higher with a
clean credit history the last 12 months?
3. Do you meet the income limits as specified?
Check with your Mortgage Loan Originator at Fidelity for the answers to
these questions.
If he/she can answer YES to all three questions, a Rural Development
might be your best option!
VA Loans
Eligibility for the VA loan is defined as Veterans who served on
active duty and have a discharge other than dishonorable
after a minimum of 90 days of service during wartime or a
minimum of 181 continuous days during peacetime. There is a
six-year requirement for National guards and reservists with
certain criteria and there are specific rules concerning the
eligibility of surviving spouses.
Why Choose a VA Loan?
• Buy with no down payment
• Loan amounts as high as $417,000 with $0
down in some areas and even high with a
down payment
• Interest rates typically better than other loan
options
• ZERO monthly mortgage insurance
• Funding fee can be financed into loan
Recap
VA
FHA
Conventional
USDA
Interest Rate
5%
5%
5.75%
5.125%
Principle and Interest
$1386
$1318
$1386
$1388
Monthly Mortgage
Insurance or Fee
$0
$269
$114
$82
Estimated Taxes and
Insurance
$185
$185
$185
$185
Total Monthly Payment
$1571
$1772
$1685
$1656
**Example based on a Purchase Price of $250,000
FOR MORE INFORMATION CALL:
Grand Junction:
970-242-7000
Montrose:
970-252-7395
Steamboat Springs:
970-761-2245
COMPLIANCE
Equal Housing Lender. This is not a commitment to lend or extend credit. Restrictions may apply. Rates may not be
available at time of application. Information and/or data are subject to change without notice. All loans are subject to
credit approval. Not all loans or products are available in all states. Bay Equity LLC, 100 California Street Suite 1100, San
Francisco, CA 94111-4561; NMLS ID#76988. Loans will be made or arranged pursuant to Departmentof Business
Oversight California Finance Lenders Law License #605-3919; Licensed by the Department of Business Oversight under
the California Residential Mortgage Lending Act- #4150077; Arizona Mortgage Banker License #0910340; Hawaii
Mortgage Loan Originator Company License #HI-76988; MBL-7852 Idaho Mortgage Lender Broker License; Montana
Mortgage Lender License #76988; Nevada Mortgage Broker License #3918.; New Mexico Lender License #76988;
Oregon Mortgage Lender License #4845; Texas SML Mortgage Banker Registration #76988; Utah DRE Mortgage Entity
#7953347; Washington Consumer Loan License #CL-76988; NMLS ID#76988; Colorado Mortgage Company Registration
#76988. Regulated by the Colorado Division of Real Estate. To check the license status of your CO mortgage broker, visit
www.dora.state.co.us/real-estate/index.htm
Texas Mortgage Banker Disclosure: http://bayeq.com/forms/linked-documents/Pursuant-1.pdf
NMLS consumer access: www.nmlsconsumeraccess.org/EntityDetails.aspx/COMPANY/76988
BEHL-140401-9.0